WH Smith wades into e-book reader market with new deal

Thursday 13 October 2011 07:13 BST

Retail chain WH Smith made its first move into the electronic books market today by sealing a distribution deal with Canadian group Kobo.

Analysts have expressed concern about the impact of electronic books on physical book sales, but chief executive Kate Swann said the move, which will see Smiths sell electronic readers through its stores and website for the first time, would "complement" its traditional print books business.

Customers will have access to the largest eBook catalogue in the UK through the deal with more than 2.2 million titles and one million free books, while Smiths will sell two versions of the Kobo electronic reader.

Smiths announced the deal alongside a 4% increase in profits to £93 million in the year to August 31 despite like-for-like sales falling 5%.

Book sales fell by 4% but the travel business, situated largely in airports and railway stations, produced record profits.

Cost savings also enabled the high street outlets to offset the general retail woes and increase their profit contribution by 2%, despite same store sales dropping by 6%.